INSURANCE CODE t 7 > PRESIDENTIAL DEGREE NO. 612 Ee CED CONTRACT OF INSURAN3E ‘An agreement whereby :ne underlakes for a consideration to indernnlfy another against toes, damage or fablity: arising from an unknown or contingent event (See.2, par.2, Insurance Code of the Philippines). 3. 2. GOVERNING LAWS 4, Insurance Code; of, ints absence 2 Civil Code; or, in tha absence of both, 3. Genoral principles prevailing on tho subject jn the United Statet, particulary In the State of California where our Insurance Codo was pesed. ELEMENTS OF THE CONTRACT (PARIS) 4; {neurable Intorest ~ The Insured has an insurable intorest in the lite or thing Insure, Le. 9 pecuniary interest; 2. Risk of loss ~ The happening of designated ‘events, either unknown or ccntingent, past or future, will subject such interest to some ‘ind of logs, whether in tho form of Injury, damage vot Habilty; «= mS 5 3." Assumption’of risk = the insurer undertakes fo aseume -the-rak- of auch loss. fora eonsideralonsie ‘ the Ineurer’s promlse'te sso. ye. 54 Meas iaifad chai acad ac /MERDERT CALVIN ABUGAN everal ‘conenttncaa aw Ages es ‘emmeonss (2°35 CambolnSindovt ol Ws Aon; Agnas Pod ness, Annie Dv 40% Payment of Premiuin\-- the consideration for rata) MANOKO ADEL SANTOS ct eel aptaony GRACE SANAN TRA vce Chat for operators, JUAN CAFLDS CJES'RO ve eal ff wade, MAE ANSEL ETANG vie chal forsee for anc, EREENEONA ACOSTA echo fr Ed A JELLO CONCEPCION ven ve forages NATURE. OF INSURANCE CONTRACT (ViC- GROP.CUP) a +. Consensual ~ itis perfectdd by the meeting of the minds af the parties; Voluntary - the parties may incorporate such terms of concilions a they may decm convenient: 3. Aloatory ~ tho ‘ilabilty’ ‘ofthe’ insuer ‘ls Sependent on tive happening of an event Unilateral ~ imposes legal duties only on the insurer who promises to indemnty another in case of loss. executed fs fo the insured after payment of premium, and ‘éxecutory on the part of the fisure* until payment for a foes, 5. Gonditional ~ li is subject to conditions, the principal one of which Is the happenirg of the event insured against * 6. Contractaof-Indemnlty.c-.,Except fe and ideulahdetwieresthe esult Is death, Y% a contradt'"8t “Lsudsce isd) contragh st ijrdamnity .wiiorebY: theSinsurer promgi@nsite he, goed nh jhe lassyetuh 7. euessofal ps care aclereagicita iv itis RISTING AUNARELLEE IPOS | PATRICK SARMIEN (0 subect chair, KAA. KATRINA NICOLE CONT, CTC: distant subjoct chal JAN MANLLLE REYES WP, IAF AASAWGCAY tas cn) “Inteiectual property, INISH TOBIANSS apeelalIsws, JOYFUL KIALASON bea akig laws, XOXENOS SULIT corde of Comnetn, NINA IFURUNG mepotlable Inert ne MAMBUE ere a, Sen OUNSUCEO arpa on lows, ARCO PAO corpo ws ae ae 2 rind Ch Mb Eares, anthony Menon, ite: tall Pande, Monte ut 07 escua anda sheene sero, Apt sure ova asin, Corwin Para, Roda os, Fatty, Sepang Naroer, Ment. Ana . ath158.91 2009 CENTRALIZED BAR OPERATIONS SURETY CONTRAGT AS INSURANCE, A contract of suretyship, shall be deemed to be an insurance contract, within tye !meaning of the Gode, only if made. by a surely wha or which, as such, is doing an insurance business, “Doing an Insurance Business": 4. making er proposing to make, as Insurer, any Insurance contracts... making oF proposing to make, is surety, any ‘contract of surelyship as-a vocation and not is marely Inadental, 10 any” legiomate ‘vupingss of activity of the surety; * 3 doing any kind of business, including reinsurance business, specifically recognized constituting the doing of ‘an Insurance bbusinese within the meaning of the Code; 4. doing of proposing to do any business in substance equivalent to any of the foregoing iva manner designed to evade the provisions ut is Gade (Sn0.2, par, Inpuranoy Code). Hota: ‘Ino fact that NO profit Is derived fron the making ef Insurance contracts, agreements or transactions or that no separate oF direct consideration ts received therelor, shall NOT be deemed conclusive to show that the making thereof does not consitule the doing of transacting of an insurance business. FIVE CARDINAL PRINCIPLES IN INSURANCE (SIGA) 1, |nsurable Interest ~ reiztion between the Ingwed and the event insured against such that occurrence of the event will cause substantial loss or harm of some kind to the insured Principle of utmost Good faith (uberrimae ficios)~ KEnch party {akes Into consideration the character, conduct and/or credit of the ‘other and in'making the contract, each Is enjoined by tavi.to,deal with the other in utmost good faith. A’ violation of this duty ‘ives the aggridved ary te fant e rescind the contract. =." 3. Contract of Incest ~The Insured who tins insurable interest over # property is only entitled to recover the amount of actual loss sustained end’ the burden. ls. upon him to establish the amount of such fos Rules on tndornitys 9, 1. Applies ONLY ‘to’ property insurance except when the:ereditor Insures ihe life of his debtor. A life insuance' la NOT a contract of indemnity, it ds considered un ee wy insured maytadhere" if he chboses but whic 5 3 a ieSubrctai Investment.’’ A’ ife policy. constitutes,’ through the insureds savings; his investment and the eamings ‘thereon, a measure of economic: security" for: the insured during his lifetime and for” his enefictary ‘after. his. ace). Raatlonates h.auirance sentract Is porsonal Exveptions: 2, In edsey of Wo, nceldent, and haat Ingurance (S00, £0, lusurancn Code, Reason: ‘They pte nol roqatind ae contract af Itdamally rv therators, Insurab!t Internst aud sist only at the {inva the insurance Is effered. b. Change et tntorest In the thing Insured after enurrance of a Injury which agulis in a loss (See, 21, Insurance Cede). Reason: Aker the lous hab ‘yapnenre, the ‘iablity of the insurer becomes fixed. Thevstora, the ineures hes the right to sigh hia walm against the Insurer as any ather money ciaim, 6 Change in Intoreut iin ens of mere of several distinct things separat ly insured prove pollzy (Soe. 22, insurance Codey, Reacon: The sonttact is divaih'n, d. Change af Interest, by will or succe: con the donth ot the Insured (See. 23). on, anny Art. “314 of the Cull Code Beatatuty ofentreet) 2 “Ahouver takut the propery of the ftocsdert wil automatically become the owner of tho polcy. natat Of internet by ore of several pariners, Joint ewnera, or owrers In Common, whe ara jointy inrured, to (Soo. 24, Insurunca Cox). Introduced alienation 6 pally, Into the oo-ewne-tt ip itis 1 fo stranger that will suapersit! MEMORY AID.IN COMMERCIAL LAW] MAS 4 Wan A palley Ie 80 framed that tt 4 2 : Meee vel : 3, tanster volves Anoral Noxord vel tin to the bereft af whamsoevar, during the continesn"« of the flak, may Lecome the owner of thw interest Insured (See, $7, tnsurai: Con, Rergonr Ark, $998 of the Git Sede (Avlorumy of Goniracts) Wren there Ina arghibitlon my alest alienation or change of inte rast yeith ut the consent of the insurer, In which cae, the poiizy In aot merely suspancind but avolded. TRANGFRR OF POLICY Ie LICR Inurinee = tho polley nny ba trewvlortnd without. the conennt of the inawwar (See, 181, Ins tranco Code) Roagon: The polley does not repranent a personal agruement between the Insuiad andthe Insurar, Exeoption: When notice fo an ineer of va laneler is axpressly coguited In tho poly (Soe. 182, Insuranco Coda). iy PROPERTY Inaurance = the policy nay NOT bb “transferred witheut the consent of the insurat, Rosaon: The insurer approved tho policy bared on the porsonal quailfcatien and ‘ha Insurable interest ofthe insure, Ethot of Transfer without Consnnt: The Inurance polley will be suspended and al ol uy unl tha lnhotest fn SA a" Insurance 1 CAEUABAIAR GRRE ~ tno pone Sy rain Sell add eRe of 2 jane ‘8. parso-o! falm of right of vist “Tee 265 12009 CEFITRALIZED BAR OPERATIONS VOID STIPULATIONS IN AN INSURANCE CON FRAC: 4. Payment of lots, whether the person insured Fas of nol any insurable Interest Inthe subjocbmidier of Inwurance: 2 Tho policy whall bg revived ay uroo! of such Ireor aay 3. Evory polley exaculed by way of yaming or wanting Is vold (S00, 25, tnsurence Coe). FOUR PRIMARY’ CONCERNS OF THE INSURER 1. Gortect avthnation of isk whieh enables ‘neuter (9 uatermine tf ne wl approve the policy eppioaiion wnd It $0 at what premium fale, 2. Dolormination ofthe sisk: 3% Gontrol ef rik to quire agoint incre of sk; 4. Daerming If tows occurs and its anount thereot, the DEVICES UYED FOR ASCERTAINING AND CONTHOLLING MIGKE AND LOSS (CREW-C) 1. Goncealmont » neglect to communicate that Which @ party knows and ought to Gommunioais (300. 26, Insurance Coda), 2 Roprosuntation = an oral or _watten Slalomaud of u fac. or condition offeeting whe fisk made hy the inwused 10 the insurance company, wwnding (© incuos the Insurer to axzume tha risk, 3. \arrantlos ~ stutements or promise: by thy Inswad set forth in the policy incorporated init by proper refura untruth cr non-ful'neant of whieh in any Sespect, and wilnout reforence to whether the Insursr Was In fact prejudiced by such untruth i nen-fulffinent rander the po'icy vowable by the Insurer. The same may be-esoressed, Implied, alliimativy or promissory, Exeoption ~ Excoptions maka more definite. the ‘coverage indicoled by the yonerat set criplon of thw tisk by excluding cv.tain speciad rivka thal olzerwivs would be Indiuded under the general. .anguage dasciiblag the risky assumed, 8 Gonaitlon + The insurer must also protect Timgelf agelnst wrauriulent claims of loss and is he altempis 19 ny by Insaning in tie poiley variots conditions which make Uwe form vf other conditions pracedent or subsecuent, Ban Weve College of Law CONCEALMENT Roquisite 1. “A party knows a fact (a material fact) which fhe neglects to communicate or dlaclo vlher party; 2 Such ‘party concealing 's duty’ bound to dischave such fustto the other; 3. Such paty concealing makes no warranty as to the feet conceaind; anc 4. The other party hes no means of axcertalning the lact concealed. ‘Tost of Materiality: Determi.ed not by the avent, but solly by the probable und reusonable Influence of the facts Upon the party to wham the comenunication Is due, In forming nis estimate of he advantages ot thp ;proposed contract, of in making his inquiries (See. 37, ‘nsurance Code). Distinguished from Materiality In Marino Insurance: Rules on concaalment are strister, slnte the Insurer would have 10 depund simost enliraly en the matters communicated by the insured. Thus, in addition 10 material facts, e@2h pany ‘inust disclose At. the information he powsesoun Wwhica are materlal to the Information of the belief lor expectation of a thiid parscn, In reference to & mateilal fact SUT a concealment in a mating Insurance in any (the following matlers enumerated under See, 410, IGP doew NOT vilate the entire contrect, but ‘merely edonerates the Insurer from a loss swsuliing (om the risk roncesled, Etloct of Concealment 1. thore ie conguaiment under Sec, 27. the ramedy, sana hAUERNevoachasion. Cote cole enae ea the. parecer rs 7 ces ny 2) 4 couse 5. fy rest Bad at 20. 6 Fi i acuuiud wail NOTHoan Bicoa College ef Tne Penson’ Internation Ia no loraee material ar Tewdll no longer infurnen the otha party to enter Into seh centiact. Mattnrs the! need not be diueloscel = Neither party to # contract of Irsurance Is bound to commuricate Information of raaters following, EXCEPT In annver to Inquiles of the olher: (WOKEE) 1. These which tha uther knows; 2. Those which, In the exercise of ordinary sure, the other pught to know’ and of which, Ihe fonner hae no rasan lo suppose him Ignorant; 3, Those of which tho ether waives gommunteatior; 4. Those, whieh prove of tend to prove the existun:a of a risk aycludet by a warranty, and which are not uthenwise rnaterlat, Those whlch relata to a nsh gyconted ‘rom the peliey 6nd which Ato ‘tol olnenwiss vatertal, Note: Naithar party st bound fo communiento, faven van Inguy, lafermvation of his own Judgment. “ha pares are bound fo Hnow all the grnaril cavtgas whlch #70 open (9 his inquiry, eu aly ‘uth the other, end ai general usages of trode, ‘Tho right {o Information of materlal facts may he WAIVED: 4. _ by the terms of the contrac, 2. by fallura lo make an Inquiry as to rush facts where thay ae distinctly implied in s other facis from which information is ‘communicated. Matiors (hat must bo discloved even in tho absence of Inquiry: (M.No n.oans-No w.!r) . Thubs metotlal to tie contract (S96, 31,34 3, Inatronen Godo 8); 2. ‘Those which the other has no moaus of ‘escurtaiiiag (Seo, 20, 32, 33, Insurance Code); 3, Thove a0 to which the party with the duty to communicut makas pe waranty (S38. 6776, Ineurante Corto). REPRESENTATIONS Kinda et Representation: 1, Affirmative = an atfimetion of fact existing \whnt tha conteaet beging; 2. Promissory = ainiament ny the insur concerning what {8 fo “iapnen suring the term fiho inaurence. 3, Oral ov Written - MEMORY AIDIN COMMERCIAL LAW] 267 REQUISITES OF A FALOG REPRESLNTATION (MISREPREBEN TATION): 4. The Infured alatod a fact wich is unt. 2, Such fact wine state wilh knowledge anti is untrue and with intert to dacelve or which: ho slvies poaltivaly as true without knowing # to be true and which has a tendency to mistond, Suc, fnetInenthor ease 18 ratorint to the cis Tot of materiality ~ the same as concuotnent (Seo. 31, Insurance Cnde) Ettnat of Misroptesontetton: 4. Tims Injured party ent!"ed to resrind from the “TIME whan the representation besonvas false (506, 48, hisurance Goda), 2. What the Inautor a teptad the paymen: 6 premium wih the knowizdge of the grou df rnselaaion, thera fa n waiver of such rah 2, There Iv no waiver ef tho right of rescission | the Inaurar had no knowled3@ of the qroxin: thotefor nt the time of aaceplinee at peer nayment (Stokos ve Malayan Ins:raes, Co Ina. GR No, LeB476b, Pobrunry 24, 192.0 Charastertatics of misrepresontation A) Not a part af the contrast but men sy collateral ir ducementt> it 2. Oral or written; 3, Mada of the lime 9%, of botore teeta’ ths policy and not ater, 4, Aerod of wathdrawn before the innura ‘fects but not aftarward: 5. Refers fo tha dele the contract gous llect. 2 SUITE ERMA DeANR Iie wee ee amen el fects a ae pean Auen hese H.-G. ae feren fa acle263 | 2909 cendyeauizeo Ban OPERATIONS Basis: ‘The Insurar to9k Inte conulderation tho condition of th propaity at the time of effectivity of the pollay, Kinds 1. Expross = en ageaomunt extressed in a aly whereby ‘the ineured lipulates tot Certain facta rolating to the risk wre or shall be ua, oF contain ucts relating to the seme ubjaci hav bean gr siwllte cons, 2, Impltad it's dgamed incluced In tne contract although not exprosaly nienoned. Exa:.pl0: In marino Insurance, seuworbinoss of the vassal Hlovte of oreach of warcanty: 1. Material Gone-a! Ruio: Vioiation'¢f raterial warranty or of ¢ rnatarial provision of a policy will ea‘itle the olher pauty {0 tescind te contract (Sx: 74. Insuranca Code), Excoation: & Let. oeelim belora the eiformance or thy warranty: by The peitoiryancy bovomes unlawful ut the plnce of he cuntiast; and & Performance bevsnes impossitle (Sue, 73, insurance Codu) lims of 2. tmmatarlal (ex Other lasurance (laws) Garicral Rut Feel no} avokt the pote. Exeyption: . When ina policy ‘exrressly provides or declares that & vielallon thereat whl avoid it (Soe, 78, Inouranee Cod). Wray on the patsy, Muy bo ewtites in Vie policy eisully oF by tulelanee ‘ar may bet Ora ust bo proved tc bo Folsity oF nen-fatinent cperater as @ breach of coruract Fatty renoery tne poly oid 6m the Ground oF Hated CONDITIONS Effects of Breach; 1s, Condition procer’snt ~ prevents the accra! of cause of action, 2 Condition subsa went ~ uvoids the policy or jenutioy the insurer to reucind + The insurer may alzo protact hiinsulf ayvinst fraudulent cigima of loss by inserting in tie oligy various conditions when take the form ‘of conditions precedent, For instaney, thera ‘arg canditlons requiring immediate notice of 1989 oF Inlur/ and detelled proots of loss within 8 lialted pedod. ire 5 "| (ane oe EXCEPTIONS Provisions that may specify excepted pi makes more definite the covarane indicated by he yeneral deveription of the risk oy excluding covialn specified risks that otherwise would ba Included vntor ihe general language dereribing the sish dssumed, + An insurer secking io ¢afeat 2 claim because ‘of an wxeeption of imitation in the policy has the burden of proving that te toss comas vin Si Bunda. caption or eR hig gourden MERONUES LEED A bo prove, SUPERB eg eh es aati Frm CH) col st Bera Cotlege af Lawfe Meda Galles af Fawn RECISSION IN NON-LIFE POLISY: Tie insuror mutt exncaisa tho gh to rescind the contract BEFCRE tha Inaured has fhod an actien to collect the amount of insurance. ‘A dafaneu (6 an acon to recovzt Insurance that polley was obtained tieugh false sentation, fraud anu deceit is «/OT In the attra of an dellon to rascind and shervtore not barred by the provision, ‘There fs 96 seni for Inferposing this dofensa, RECISSION IN LIFE POLICY: ‘The defenses mentioned are available un'y during the first two years of a le insurance policy, prraided {hat affor @ pole) of Insurance mado Doyabla on th death of thie neviad shall have ‘been In force during the lifetime of dhe ineured vor te period of 2 yearn irom the dvte of its [ns 10 6° ts relnstate hent, tha Insurer cant prove thot the volicy Is v.98 uh initio or is reacineatln by the vengon af audulent—¢eneeaimant or misrepresertisior of the Insured or his agent (See, 48, Ins; arcu Code) (NCONTESTABILITY CLAUS Purposs of hicontostability Carico To agsure tat wfigr the specified period, she pelley awn’ may rely unon tsa” insurance rotnpany 19 carry dul tie faim af the contract feqacdiess of imeqularites In ecrviection with ‘the opplicalion which inay tato~ be dis:overed. Roqulsitos (2.41 4, Wenust Le a | {fe Insurance poticy, 2. Mt must be Paysolo on the death of tae Ineured: and AL It must be In foree during the wtetine 0” the Insured for at loast 2 y2ars from its dale of Issue ot of is lost ralstatement. © Tho parisd of fo yoncs may bo shortanad but It earnot 9 >xtondod by stlovation. Dofenans not barred! by Incontostabity ciate (FULT-Vielous-Ptn): 4, That the person taking the insustence Jacked Ingure le intevant no requires by law; 2, That the enuse of the caath of the insured is 1 excepted rlak; : That tha pramlume have net heen pla 4, Thet tne condlvions of thy policy ralaiing "9 nlltary or naval gervice have been victnte 6, That the frou leaf @ partlenlan vicious tyne, 6. That the Danafslery falind to fumiet pioat of daathior to" comply with any conditions imposed by the policy arter the loss. hie haapened: 7, Thal the action was vot beoudht thin (oe time svecied, cea eee nce a een oy sey i MEMORY AID,IN COMMERCIAL LAW] 169 FLATT, POLICY OF INSURANCE ‘Tse veelten Instrument In whieh contract of Insurance Is eel forth (See. 49, ingvienncn Cod). I is ot Necessary for thy pertection of the ‘contrat. » Note! An insurance contract may bo vorbal or tn welling, or paitly In welling and party verhal However, the law provides that no policy of Inguraneh shall 90 Isaued or delivered uniens tn the form jroviously approved by the ingurance Commission (See. 228, Ins'rance Cede). ‘The apnrovel of the Insurance Comminsionat may be dispersed with upon the certification of the prerident vice-president, or genaral managar df ye inguranes compnny concened thet the risk Involved, the values of ich risks ands or the premiume therefor hig not yet bean delormined or established, or stich axtonsion or “enewal 8 not contrary to and is not for the aurpese_of violating any provisions 0) the Insurance Goda, ef of any rulings, Instrictions, fof cliculaes of tha Insurances Commissioner (ins, Moma Gr, No. 3-78, dated Soptenivor 2%, 1 effociive Gk. 24, 1876). Contents of Polley (RAPD): 1. Bastin 2) Amount of nauranes, oxcopl In open or running poleies; 3, Rainot premium, > 4. Bloperty or tha tit Insured 8. Interest of the Insured in the property Iho Is NOT the absolute avnar, SOUT I he Is the absoivin awn information of tho nature or amour of hia interest ne sd, not be conn CSN (Soe, i Fes soar yin SNe a Oe Ee ran i aural Se thet modi dghsrdioy 0 meat neg corlain cond 5 o A couyten y & whine on A. igen, Nat, on WAN ‘ ithe tv mieranty wan iseurd ppailey. tho ‘counter sig Aal Is NOT iptv tile or eve ii370 |2009 CENTRALIZED BAR OPEHATIONS of the riddar must be wiittan an the blank s.aces Provider ix the policy, The rider, undorsament, clauyy, or warranty was Iesued AFTER we lauuance of the policy: + it tho Inaureu appicd for the siuer, wadarseimani, claure, or warranty, his countor-ulgnaturd Is NOT necessa:y. * Itha eame fs not upped fo" by tha insured, ‘dort and the the shall be countersigaed by tho Insured or owner Note: When the requicumsnts for a rides ure compliod with, k Is conviderad as part of tne pulley, BINOING RECEIET mare gokndwiedgniant cn behalf of the Cornpany that its branch office hag received from {ho opeileant the insurance pramiin und mid asceptad tho applleation subject Io aracassing ay the nud office, COVER NOTE (AD INTERIM ‘A concina and temporary wiitan contre ct issec by the insurer thrauign ts eluly authetizad yent ‘embodying the principal turiay of ai expected policy of insurance. Purposo; it Is intended to give temporary Insurance prctection coverage to the applicant ponding the aceoptance or rejacion of his ‘application, Rules on Cover Notos: 1. The cover noty Is votid fur 60 cays, ater which the poicy must be issued, 2. Tho period may be extended or renewed Doyond 60 days with the will approval of nlssioner na determines tat each Ia.n9t corkrary to and Is not for he Durpase of Violaliny any provisions of the oul. " 3. NO separaty premiums are” intended or lequirad fo be paid on a caver note orcause Gover nates do nol eontain particulars of the property Insured that would survu an basis for {ia “conputation of praniums. Thu. no promluni could by fixed and pald on te ecver Neto, (Facto Timkar Export Corporoiion vs, Court of Appoals, GA’ We, L+38613, 112 SCHR 199, Febniory 26, 1982), . 4+ Cover notes should ‘nol ba treated as Separate policies but shavid be inteyraiey to he regular policies subsequonily. Issued co {hat vig prémwums on thd egular poliins Include the consideration fur the cover notes (Pocita Tinvor & wort Corporation vs, Court Of Apguais, GR No, LeG0K13, 112 SCRA 199. Fobruny 28, 1902). Beet Ban Beds College of Law (NOS OF INSURANZE POLICIES: Open Polley ~ ona in which the value of tho thing insured fy not agroed upon, but left 10 3 asearlalned ‘in cass. of tors (See, 00, insurance Code). 2. Valuod Polley ~ one which exprasss ont its face agreemayy that the thiny Insured shall be valued #1 @ gpucified sum (Sve 61, lnsurence Code), : : 3. Running Policy ~ one which conternplates Successive Insurances and which provides that tha object of the policy may ba from timo 'e time defined, especially ar to the subjects at Insurance, by ‘uddillonal statemunts or ‘undorsuments (S22. 62, Insu/ance Codu). GENERAL RULE: Th’ insurance ‘progueds shall be uppliad vxcl.sWvoly to the propar ntgrast of the person in Whose name or-for wiicgs boreft is made. A third person may not sue the Insurar directly. EXCEPTION: 41 tig insurance contract way Intended to tencrfit thi'd persons (art, 1914, Civil Coco), the lalt2r ‘may direct clains from the Inaurer Thus, 1. 4f the insurance contract contain some siipulation in favor of a third persun + (stipulation pour autrui), the latter alinough fot a party to tne convact may. enforcy ine stipulation In hig favou before itis revoked by the contrasting parties (Coquia v. Fiekdmun's (ns. Co, at al, GR Wo, +2276, November 2Y, 1968), 2, 4 third person has no right in law or equity to lire proceeds of an insurance Unless there is @ contract or trust uxprass or imolied between the insured and thd’ parsoi i GR No, L- Inare-roGon Leda Caltege of Fy TEST TO DETERMINE WHETHER A THIRD PERSON MAY DIRECTLY SUE THE INSURER OF THE WRONGDOER: Whore the contract ‘provides for INDEMNITY AGAINST LIABILITY to third persons, then the latter fo whom {ne ingured Is fnole, can deectly ‘sue "he Inaurar Cn the cther hand, where the insinnnce is for FIDEMNITY. AGAINST ACTUAL LOSS OR PAYMENT, then third porsons cano! proceed agalaat the Insurer, the contract boung solaly to reimburse the Inewiad for lcbllly actualy discharged by Sim through paymar to thi persons, sald Ure! parson’ reseurts being, thus Frted to tho natured alone (Gtingon ¥. Do! Monto, thi). CANCELLATION OF NONLIFE POLICY isiton (WANG). atior noties of eanetlation th the Irsured; 2. holley must 20 baged on the oocurre ‘0 ater tha affective dato aft hs poliey 9: ene oF more ft ty grour: 9 mantinned 3, notes, must 8c In wring, mailse ar dniivere 3 Jo the Insunsd at the adeiors shove in thee patie 4. nollen! sys stuto the grounds riled 990A pravided In Baction 6A of tha Innuraace Code and upon suqueat of the insured to furnish fects on whlch canealiatien ig inact, Grounds (VP FrANO): 4. pon-paymant af promume: 2, onvtlon ¢f A erim> out of acta incrsasing the hazard Inaurad aginst, 3. fraud or material misrapresentaticn, 4, Wiel oF rockless acts 0” ‘omissions ineréaaing tue risk insureo against, phyeleal changes Ir the property insured making lt uninenirable; Ustaimination by the Inaurcineo Coramissioner that the’ polly weuld viniato thn Insurance Code, RATT TT A GENERAL RULE: GASH AND G/RRY RULE + No Insuranre potoy Ineued or raaaveet (9 vulla and binding unl acival payment cf wa premium, Any cqreemunt ty the olirary 1s vuld (See, 72, Insurenco Coda), excepTiONs (Acie) 4, Incase of ito and Industrial ie whanaver the grace. petled prevision epplles (Sac. 77, nsurane tio 2, Woore theit Ia an goknowleugmont in the ronicact ot policy of lisurence thal the MEMORY, AID IN COMMERCIAG LAW! 171 premium hod already been paid (Soc. 72, Ingutaree Coun, 3, If th nation have agreed to the rayrnent of the premlum ta fnstatiments and portat payment has been made al the time af the ess (Makatl Tuséaay Condominium v. Cour: of Appagis, GR No, 95545, Noveniver 6 1902 4A. Wher a grodit tana was aye ure (UDDN Genera! Insuenree, int, v, Miesnart. Toletwuet, GR No. 13747, April, 2001). 4, Where the pattias are erred by gatoppet Note: See..77 maroly prachides the pnriiae fron stipulniig that tne polley Ie valid evar sf thm promiums aro not pal (iMinkati fuseony Condominium Corp, ve, CA, GR No, Issa Novemhars, 199" Effect of Acknowlodgment of Racaipt of Promium in Polio Conetinnlun evidence of ite prymont, in s¢ tar 96 fo make 186 pay wvinelng, innit standing. any typalation tharain {yal i shall not be binding Unt the premum Is actenlly pale! (Ser, 74) Reason: When the policy contains such vitor Aacknowindgem ant, its presumed that the inert: hhas waived the eandltion 0” propayment, It hneby crouton a lagalfetion of payman.t, Note: The conclusive presumption mxtenda only to the quastion on the binding effeat of ti puley, ‘As far as tha payment of the premium irae is concrmed, the acknowladqment Is only a print faci »videace of the fact of such payment, The Insurer may stil diapute ts. ecknowladgnvent bot finly for tha pumose of receiving the premium dua and unpild (Tho Insurarce Gorin of the ie M ‘ ne hin tha aught EY check wil not binding uit the converted into ensh,172 12009 CENTRALIZED DAN OPERATIONS This Is consistent with Article 1249 of thy Civil ‘Code, Note: Puynient by meuns of a check or nota, ‘oceptal by the Insursr, beuring a date PRIOR to the oss, essuming availablity of tne funds thoveot, ‘would be auticlant even If it remains Unencashad at the time of tha loss, The Bubsequent effects of encauhinent vcule retroact {6 tha date Uf the instiununt and lis acceptance by the credlior (Pandget of Commercist Law and Jurisprudence, Vitug, 2008¢d). Entitomerst of Insuray te retumn of premiums pal: 1. Whole + ae IMhe thing inwuted was never exposed io the ighd insured wgalnst (Sec, 79, Insuronce Code, : hI contract ly voldable dua to fraud or talsrepresentation of the insurer or bis ‘ayonis (Sea. v7, Insuranico Code); & W contract ts VoWlable because of tne existence of tacts of which: the Insured wes ignornt wiinout his fault (sec, 87, insuronae Cora); 4, Wron by uny daisui of the Invurud other hay actual fray, the insurer never Incurred tlabilty (See. 61, mnssrance Grdoy, ant Wher rescission Is granted cue to the insurer's breuch of contract (Seo, 74, Insurance Coda) 2 Pro rata @ When the Insurance Is for a delinite Period ond the Insuied surrenders. his Pekey bofore the tuenination thoreot Excoptions: oiidy nol made for a celine pari of tine: 2. short period rato is agraed upon; 3. le insurauica povies b. When thara 'y avorinauranco hin cage of ovariisurance by sc vbla ingprango, thy Insurer 1a not lable {or tho tela} amewni of tho Insurance taken, hs liabilty aing [ited to the property insued. Hence, 4. Ingurer Ww fot enti lad to that pation of the peainim corresponding f@ tre uxcess of thw insurance over ue Inaurably intare of the Insured. 4. In eoae of ovarinouranco by sovsrul iIngurors, the ingurae is un'ed to & atublo ‘ratum Gl tas plomicm, pioponionad Wo the amiourt Uy which the aggregate sum insured in Ti San Bedu College of Baw all the folldes excoeds the insurable value of the thing at risk (80, 82, insurance Code). DEVISES USED YO PREVENT THE FORFEITURE OF A LIFE INSURANCE AFTER THe PAYMENT OF THE FIRST PREMIUM: 41. Grace prio’ ~ ufter tha payment of the first sremium, the Insured 1s entitled to w grace esiod of thirty day within which to pay the sueceadng gremiuma ih Surrandor Value ~ the amount the Insurer agrees to pay to tha odor of the policy W ho surrenders t and relesser his laim upon it Extonded Inaurance'~ yhera the Insurance r'glnally conivacte for la continued for auch otiod #6 the amcunt avallahle thoreler wil pay wher (will (erminate, In such a case, the {insurance wil be (ar tie same amount as tie original polley but for w period shortor than the period in the original contract, 4, Pald Up Insuirancy =o sore payments are Fequired, ara consiate of insurance for life in uch an “amount a3 the sum available the'elore, considered ar a single and final premiun, wil purchase. Wt rasulls to a faduction of the original amount of insurance, but for the same parud origine ly shpulated. Automatle Loun Clause ~ a ctipulation in the policy providing that ypon de‘auit in payment “of premium, the game shall be paid fom. tho toan valve of the ycticy until thet yalue is consumed. in such a case, the policy is continued In force as fully and elfectively as ‘hough the premium. had been paid by the Insured om funds derived froin otner sourcas. : Roinstatemant ~ provision that the halder of the policy shall be entiled to rainstaterment of the copash UMLIATHSSiydiy theo yours payment of b EL eee” ae b extonsiong, MiB inacrons uquinites (TE 1. Gan {nsuradsforgon, >afb Ben College uf Ann 2. sama subject matter, 3. sama [nterast Insured; 4. name isk ur peel insured gnina, end 5. Zor more Insuraca inauring separately, OVERANSURANCE Evis's when tha Invuted Insurer the nme property for an amount GREATER than the v hie of tat property, Effoct in case of lost: 4, The Insurer 's bound only fo pay tha exient nf hu reat value of the property fost; 2, The Insure is enitlad to racaver the arraunt of promlum corresponuing to the excess In value of ths eropary, Etincts of ava Incuranee by dous'a laminin (SFC. 84, INSURANG? CODA) 1. The ‘inserted, untess tha policy uthonwiew provides, “aay elim pay nent fain the Inaurers in auch ordar ns ha may aaioet, up to tha nmcunt for which the nrurerk are severally liable Uader thalt rotpectiva contracts: 2. Where the polley under which the Insured clatnis 18 a vated policy, the Insured must give credit 43 wgainst the valuation for any sum tecelved by him under any other holley without regard tothe actual value of che subject matter insured; 3. Wirere ‘he policy under which tha Insured claims Is. an unvaluad potiey, he nust alvo eridit, at Gpalit tho full neueede value, for ‘any sum recelved hy aim under ny patiey: 4. Where the Insured recewes any sum In excend of the valu‘tion in the case of vulurd policles, of of the insurable value in the ence of uivalued polleles, ho must hold such sum ‘n trust for hs Insurers, according tthe right 4, of cantetbyition among themselves, 5, aah Insursr fs bound, ay betwoan nimse fund the other insurers, to contrbu'e ratably *0 the lose if proportion fo the amount for whlch, ‘ha Is able under his cantreet, Prineinte of Contribution o- Gentribution Clause {ie required that each Insurer contriti:te ratably fo the [03s of Jamene considering tha, the several Insurances cover tie same subjuct matter and Interest uga'nst the some peril ADDITIONAL, OR OTHER INSURANCE CLAIE A condition in the polley raquinng the Incured to Inform the: Ineersr uf Insurance coverage nf the property IMsured, Tt Ia faweul and spseltinaly allowed under See, 78 whlch provides ‘iat “(4) polity may coats that a vietnlion of species pmvinion theroof shi!’ avoid I, Mi MORY AD IN COMMERCIALLAY] 173. athorwiea the broach of at immaiatial provision dans no! avoid i." Purpesen: 4, To provont an Inetease in the moral hazard and 2 To pravent ovnednsutarce and fraud. When th a the* insurance i hhayand the value of | total of the amountn of tha ‘ha insurad tnvtable | policlos Teaund cas tot Interest ‘x00r d the Inaurabla Intarast of the Insured TERA PNR Tine ony aye Lonainguerlnged | art eae REINSURAN ‘A contract by which the Insurer pracures 9 tte) Parson {0 lnstite him agalnst tosa > liality foason of nm auiginal Ineuranen (ne 98. Ingurunee Gedo) also known a8 “Rninsin once Cassin’ In every reiveurance, the original contact of Insurarcce pnd tho contract of veneuranee orn covered! by separate polices, LIMIT OF SIMSLE RISK No irsuranan company other than if, shall retain ‘ny fis on any one subject of Insuinnce In nn ‘amount axceeding 20% of lis nel worth (See, 2, Insuranco Gorio). ea uy my y274 12009 CENTRAUZED BAR OPERATIONS Othor Torms: 1. Roinsuranee treaty = Merely an agreemant ‘yotween ive Ineance compass hereby fone agrevs to cide und tho othar > accept fwinvurance business oursuant to provisions specified in the trealy, % Automatis reinsurance ~ The renswed is bound to cede und the relnsurur Is obligated {a accopt & fixed rhure of the risk which has. to be reinsured under the contract, 3 Facultative solnsuranco - There is nv obiigation to calle oF accept participation in the risk each party having a fren encies, But ‘once the shara ta acczoted, tna obligation Is vbsolvle and the Hubli teceundor can by disuharges only by payment (Lquitanla fas, & Casunity Co, vs. Rural ins. & Suruly Ce, we, GR No. Let7439, ¢ 867A 913, January 31, 1962), 4. Hotracestion = & trensacticn whereby the ‘elnsurar, in turn, passes to arather insurer & portion of the a reinsured. It Is really the insurance of twineyesines (Thy snsuraacy Code of thy Pullppinos Annotated, heetor da Loon, 20026). CATR LOSS IN INSURANCE The injuty, durmaye oF tiatiity suctained by the Ingurec! in consequence of the happeniny ef ene (oF mote of the puriis aginst which ‘he insurer, in Consideration of thy pramium, fas undertaken to indumnity the insured. may ue (otal, patial, or ‘constructive. aE LOSS 18 SATISFIED BY (RoPaRe) 1. Baynentot loss; 2 Ruinsictenvnt (rapaie or, restoration) of the Property lost or damiayad; 3. Hoplecsmant (substitution) wit another or ilar property. * WHEN INSURER 18 LIABLE FOR Loss: 1. Loss the proximate cause of wien i ie f ell insured ugninst Sue. 84, snsurance Cc de): 2 Loss the inmmuigte cause of which ig te porit Ingured against except wi ere Wie provrate couse Is or excepted peril (Seo. 96, Insucanco Cod): 3, Las through the neglirence of the insured e*copt where thars was groas negligence arncunting to willful act (Soe. 87, Insuwance Coa} 4, Love caused by wflorty to rescue te thing Insured trom w pert ngurad ayainst (Sec 8d, luysorunee Code) Loss caused y-a peril NOT instred agains! lo whieh the thing sured was nxposed in the TT Han eds College of Law, course af rescuing the same trom the perl! insured sgainst S00, 85, Insurance Code). WHEN THE INSURER IS NOT LIABLE 1. Lose hy the Insured's wilful act or gross aglgence; % Lous due to the-connivance of the insured (Soe. 87, Insiange Code); and 3. Loss whee the excupled port ty the Provimate cause. PROXIMATE CAUSE ‘hat which In w nelura and continuous suquency, unbroken by ery naw Independant cava reduces an event and whhout which ine even Would not hava oc: red. NOTICE OF Loss. Purnosys: 1. To give the Iraure: information by whieh’ ne may deturmina the extent of his laaily; 2 To afford vw ingurar e means of detacting any frau that may have beor practiced ujion Pie 9 To ‘operate as a check upon extravugant dains, UE eee iene een Frulure to give notice’ “wl defeat tha right ci ihe inured to recover ad Defects in the notice waived when the Inguror 1, Wits {9 the Insured that he vonsiders the policy null und pean canal 7 proof of tose are ret hoi eae f . in tho ‘gregendinys for aeiermid) SUCRE apage cape he Tet vol. aduier and Sy a e ator 2 erponstaagy, vineavenabgg aNbone Dan Gea College fay 4. Interest al rcuble the logal interest rate fired by the Mo setary Board; and 4, mount of tha elalm (Zorith Inawance Corp vs, GA, GR No, 5286, 185 SCRA 398, May 44, 1980; Sve. 24"), TIME FOR PAYMENT OF OLAIMS. 4. Maturing upen the ‘The pruct oda. ani paid within 39 day» tho recap by tha inavrer of nraot av test, pod eeertsiersani at tha hex or amige by groom! 6 ya area. wii hte Bat no Inlor shan 0) den fom by Maturing ot the Be titureg (tAe | auen receipt of nrcal | | The 9 Irneadietaly payable "9 je Tnrured, exept I prcceeds. tn. payablo Ie Inetatinants acrumtiag, WHEn aba de pals sy thay Sseune dua, Tous, “whethor ‘of nol feesurring prtu to tha | 2% eer Br ndttann | eBssCuinment Ly had oF stinulated Proceoda are paybe to. the. Se made. (S00, 243, ihe | Insurance Ceo} watt 00 dey afer: crocertatlen af elaim ang Ming of peout of hath “(Bag 4 Ingu.anen Cot EFFECT OF REFUSAL OR FAILURE TO PAY ‘THE CLAIM WITHIN THE TIME PRESCRIBED Snelions 242 243 and 244 of tha Insurance Coda provide that the insures shall be liable to pay Interost “twieo the selling prascribad by the Monotary Board” which means ‘wico 2% vor annum (Iagal cata of inlerast prarerived In CB vio, 418) cf 2% por annuin interott on tha procweds of the Insucance trom the date following the tina prescribed In Secs, 242 or 243, until the claim Is fully satisfed (Prudential ‘Guresntoo and ‘Aasuranco, Ino v. Teins-Asla Ship,i!ng Lbiae, Ino GR Ne. 181890, shine 20, 2006). EXCEPTION Rofusal er folluré {9 pay the fons of demage wit ‘ontia the aenurod 10 ertlast Intoreet UNLESS auch fetes) of fullure to pay Is based on the ground that thé elaini Ia {rudutent (ibd; Ses, 242, 243 Insurance Corte). PAE RTL RULES. 1, Tag nantes tao contrast of tarurancn may validiyagroe that an action on ‘ne noisy should be brought within a Lailtudeperiod c! tie, provided auen aeulrd Is NOT leas than 1 year trent tin mia tne causa of ction accrues, It ihe perlod agreed uron is less voaimee aia ta coe a profits or B: A In movable pen, Bl oneaian We snag akon Ye | MEMORY.AYO IN COMMERCIAL LAWL IT than 4 year ffom the time the cause nf ects accrues, Such anteomont Is vols, (Sus G7, Insuranze Code) a. The stipululed prescriptive period shat! begin’ to run from the dale ef the Insurer's tejaction of the cla! Med by the trained or benoficlary ancl not fean> os time-af the ices, b. In-eqan the claim was denied ty the Innuter hut the insur sd Med 1 petition for reconsideration, the prascriptive pavitus sould be counted from tha cata te claim was donled al the first instunce and “not from the donial of the tecor aiaration (un Life Offer, Le. Court of Anpools, GR No. art 195 SORA 193, March 13, 1991). 2, Luvern Ue ne alipulation er the atisuitnion ix vold, the Inaurnd May bring the Aetloa wishio 40 yanrs in caso the contract Is waitten, 3. fn GMVLL, tho written notice of uiaim must 19 fled wthin 6 months from tho date of the accident; otherwise, the claim Is deemed ‘waived! even Ifthe same fs brought witiln ane yoar front Ita fejoction (Ve, Do Gabriel v CA, GR No, 103003, 264 SCAN 12 Novombar 14, 1996). 4, The auit for damages, eithor with the propor court or with tho inguranen Gommianionor, should Ne filed within 4 year from the dais of the daninl of the chim by tha Insurer: otherwee, claimant's right of ation shal preserine (Sao, 384, In suranca Codd), (SEE LSTNNARTALLATI I (RPE TTT AT against riska Insurance connected with ven Cod (CAS AAA ORE OF SA h we ces ith & nS , 15) Tors end ohar fe Mantperton (5%, 99nsurnncd Code), i176 12009 CENTRALIZED BAN OPERETICNS 2 + argo nan be the subject of marine Insurance, and ence itis entered int, ihe imped ‘Warranly of” seawortniness wedluteiv atinctes to whovver is Insuring the argo, whether he Ua the sblpownur ar not (Roque vs. IAG, GR Mo, 166995, Novuniber 17, 1988) Marla Inaurarce Prowction and Indemnity ‘Meaaur of Indemnity: 1 Maj os Valued votloy ~ Tho pariivs ere tavnd by the Valvatiory If tue Ineuted had some Intetuat at titk and there Is no itaud (Svo, 156), Open policy = The following rules shall oppiy Inestimating w cus: 3. Volua of thy chip vaksa a ha boginnig oF th risk, value Of the cago ~ actual cost whan fader on dowd oF market velue at tne Une anid pincy of ding: Vana of traightage — gross ‘Mrightega oxclusiva of painago; ©. cost af insucancy'~'in gach case, to b6 cided f0 tho estimated value (Soe. 181, Insurances Code;, jor divisions of transportation Invuronce: Ocenn Marine inturance Seopa: ‘2, ships or hulls goods or cargoes earnings uveh us freight i, ably Wueurred by reason of mavitime pers {ntand iariaw tesurence Clussusi 8: Property lu transit = provides provection 13 Froperty requendy exposed to loss while {ls bolay trangacriad trom one location {o anotiar, 2. Sallag Hablity ~ insurance for tose who have temporary cuttady of the goods, 3 Fhod transportation propery ~ they ary 80 Instcud bocavse they ure hold ‘o ta an sesordlal part of the transponution sysiom such a vildges, tunnels, ot 4. Floater = provides insuiaiive to folw tho ingured: property wherever it may hw lorated, subject alwor# to the Wortora’ Unuts of he contenet INSURABLE INTEREST 1 Shipowner 4. Over thu younel ty tis wstant of Ks Value, provided that If chartares, ne recovery iz ‘only up to the umount not recov 2elie form the charterer en a Me Covlege of Maly 5. Ris Q Bm Wede Corlege of Law. b. He alno hae an insurable Interest on expected frelghtags (Soe, 109, insuranco Cody), © No Ingurabla interest it he wi bo compansited by charterer for the value of tha veusol, in cate of ines, Cargo owner * var thi carge and axpected profite (See, 106, Insurance Codu). Charterer + Over the amount he Is table to the shipowner, Ifthe ship Is lost or damaged during the’ voyage (Sve. 196, Insurance Cou). Owner! Debtor (where tha vessel 6r céryo Is hypotnacetod by bavomry or respondentia) + Difference boiween the va'ue of vessel or goods end the amount of loan (Seo. 107, Insurance Code). + in foans on sotiomry and respondent, fepayment of tha loan Is subject to the ondilan thet the vessel or goods, respoctively, gan as a secu, shall 21tWva safely'al tho port of destination, + C4 vessel I hypothecated by bottomry, aly the excess ls Insureale, since & Joon fn boltomry pattakes of tho nature of an insurance covwrage to the extent of te Joan aecommedation. The seme rule would apply to te hynathecation of the cargo by rerpenduntia - (Pandect of Comnorclai Law and Jurisprudence, vig, 200600), Creditor! Lender + Amount of the foun Rite et ee: be in rope | ‘convey ‘he ondary 1Say Meda Coilege at Katy SPECIAL MARINE INSURANCE GUITRACTS AND CLAUSES. 4. AlleRigks Polley = Insurance against ab causes of conceivable loss or dumage. Excopt: a. ns otherwise excleded ls the potey; b. due to fraud oF intononat risen the past of the insured (Chon Tink Sang vs. 2, GR No. 84507, 103 SCRA 223, March 18, 1840). The Insured has the tntiat burden of proving that the cargo was In gooa cond tien wh te oly attached nd that the carge was damaged ‘shen Unleaded from the vessel, thuteafer, thy buraars shite to ihe insuror to show tha oxerption te tha eovar7g0 (Filipina Marchants Insuw once vs. Court of Appeals, GR No. B8141, 179 SORA 658. Nommbar 26, 1982). 2. Barratry Clatiaa AV clause which providas that thera can be no recovery of thu poticy in enan of Any will rmiscanduel an tho part of the nia. tar ne eros In pursuance of some unlawlul ¢* fraudul xt Riiposa wihout eonnant af owners, and to the areludice of the owners intarest (Roque vs. JAG, Ibled, 3. Inshamdreo Clause 4 clause vihich makes the Ieurar fa se for loss or damage to the hull or stachinery arising from tha: AL Negligence af the caplin, engirecrs, ot, b. Explosions, broziage of ahat's; ara cc Latent defect of macnine'y or hull (Bar Rovlw Malurinls in Commazciol Li w, Jorge Miravilo, 20976", 4, Suo and Labor Clause A-clovss urdor which the ‘nsurer_may hacome tlabin to Bay the ingured, In adsitlon to the loss actually autfered, such expenses a9 he may have Incurred in hia ators to protect the propsity against a perl for which tho Insurer would have teen Iiab'o (Seo. 159, Insuranca Goue). Nota: Such claure consttuies an axcoption to the princi that nn Inguranss contract is one of Inciainsity (where the Incurar nraniieas to ‘make good only tho io8s of the insurec) since tho inwirer i liable to pay. suetional ‘expenana for tha protection 0: the proparty _egetnst an Insured pari MEMORY AIO IN COMMERCIAL LAWL 177 Hatters, slthaush concoated, will NOT vitlato hn contract oxcept whon they caused tha [aan So 110 Iraurance Code) ‘Nation! chartoter of the Ineureds 2 Unpity ef the thng Insured to copture or distention; 3. Lnbty 10 beteure from braaeh of foreign laws of Waite; 4, Want ofnmvoesary documents; aie 5. (se of false or simulated papers, DISTINCTIONS ON CONCEALMENT Ht ee cH i “To iformniion, of brie! | of na pmly in net oteral and nea net be fcommunieetnn, alana procends trary an agen of The innired whore dt 9 Jo givn ingouratn, STUNTMAN 7) Gonessalmant on! my rea nt vt | | Tho. rfomalen oF the bolef oF expscialion 3 pomtone i ralronce ito ierinl rot Is mateo nt etl be Comiunical ESTA ROAR TANS ‘Tho esnceamnnit of any net In eettian vo ‘nny of the martina intel 410 loan not win U3 envio eantinel But niocaly exanevateg tha. Insrer Tron tle insulting Trem ! ‘nine file ronten, «went Anat the own react eer tha risk canozalnct IMPLIZD WARRANTIES, 1. Seeworthinnss of the ship at the ingepli-w st the insurance (See, 17.2, Insurance Coste), 2. Agalnt Improper doviation (Sne. 123, 128, insurance Code); 3, Anainstitlagat vanturo; 4, Warranty of neutrality: The ship will canty tha requisite documents of nallonaliy + rai of a ste or carge where: sit rend a Innere tio riko [eaten elon ef Rete 8 Us oy, resi A reintive tf general a ship’ a in Pathe nature of the (Pe Ines to pbtform the sorvice ang 7378 12009 C=NTRALIZED BANLOPERATIONS to encounter the ordinary porta of the voysge, oniempia'ed by the partley to the poliey (See 144, Insuranca Cody), Goneral Rute: ‘Tho werranty of geawerthiness Is compliea wit if tho ship ba seaworthy at the time” of the commencument of the risk. Prior of subsecuent unseaworthiness is not @ breach of the warranty ‘hor is I material that thy Yeusul arrives in safety at tha end of her voyage. Excopttons: 1. Inthe case of n TIME POLICY, the ahip inust ba anaverthy at the zorvmencement of every Voyage wha may undariake during ine period of thy coverag 2, nthe case of CARGO POLICY, each vessel upon which ‘the cargo is ‘shipned or Wanshipped, must be veawurthy at ir cominencoment of each partcviar voyace, 3. ln tin case of w VOYAGE POLICY Contemolating w voyage In viftsrent stages, the ship must be seuvorthy at ‘the ‘Commencement af aah nluge of the voyage, + Applicability of Ieplid warranty of suaworthiness to carga owner ~ It becims the obliyatio., of a cargo owner to Yok for a tellably cummon zamivr, wh on keaps ils vuuauie in acuworthy conditions, ‘The stipper may have novcontvol over the vessel but he has control in the choice of ine ‘corimon carrlgr that wil wanspurt his goods, (Roqua vs. JAC, GR No, (65925, thie. DEVIATION. uparture from tha course of tie yoyage Insured, oF an twreavoniable dulay In pursuing the SEC to be a sepy Of thal vie Is stort In tte office, 4, Additional corporations fn ndaitian fo the eaquirstnnntn imaged on dornastic insuranc® compy.nlss, dhe (oftowving fequirerents mut bu futile by foreign corporaliont a. Secure A leanne trom the B16 Yo 49 busines In the Philippines Sy following the requirements of the Corporation coquitomants fer forsige aL et times fray feory amy fans. or encurabranes, anil (3) exempt from hwy by any claimant (Rapublis v. Det Monta ators, GR-156956, Oclober 9, 2006 Tye fight to lay clair on the: fund i idepemncent on the anivency 2 the int fat Is sect to all cthor obfyations 0! the company arising from ils neurone Punimeds, Thus, elnimant’s iaterost 1s morcly inehorle, —Geing a mere feapweclaney, kihaa ne atibule of pranerts (hi. unt ant aside. an amount careospaneine to the legal roancuna at Ua povien. cvtinn 19 t¥4 Pintiagines anil invort ts ion only th such alnsses of Mligpine feurdieg ss dencsibad by the Geb duels arowilies errinal be takan out & re connaley othout the wetten consent ot Die Comanissioner. Fhe vith, the Commissioner a writen power of attorney designating sos: rena whe must fr a resident of the Frsitiplnes aa. its general agent, o> whom any notice or summans. ne legs! prncesans may be snrved tt must cleo Sign an aneremet that Is cave It sha he fuitheut any agent, the Reavies aan he Taeurnnen Commiseloner shall-havs Ve Code, iy eflect at ran en he compa » cosy of tha SEC codifeats say of toe SEE mim REQUISITES FOR SONTNA'ANGI: by parageaph 1 pusINT 9S Ce eeertad, Wma tie a ceniied 1. Reserva Requiromants core at na antl ils al Fe eats ie insurance € re Ginter entity the SEC va copy on rdnal vainton bts pots, unpale sat ea iis oe Tlatete and other ekg ve oe erga in art my tenon tay form the nature an evariete of Seal A as the business, the locetion af ta p meal I RTs tty re eeee” qnesoe ote peroane MAG «ONG I dear e Featon ety seerouirg the. arnarship. oF ‘As Frode ew ARCEW Aust mold. Gh Geeesalion, the amount of the coptal “Ys Gncutelineeanger eRUAAO amployed and ew names of tha persons whe are mnnaging «ha “ysingss, | Tha ertienia must ba verified Sy tha aMs.vit of ‘ha chief offizer, of the manager om yent of the cmpnay aucompanied by & cory of tha written arciny of aid company. tenay: a. Must fh he samme sapal rsqurarsentn fa3 domeutls companies ind 19 addition, Buin dopasit. wt, the Commiselnnet trocurition for the benofit end securly of it poleyholdera and credttors, a Sceurly thyponits sive’ be (1) answorable fot bi: tha obligaticns of the denosiing ineurue undar aa Inscrane: erntracts; (2) 2. Margin f} svargin off Insurance hy, Recruit fp thant Na Hn ears reeenn value of an ‘admitioa assets is186 12009 CENTRALIZED KAR OPERATIONS exclushve af Iti pakd up capital, in ense of a domusiic company, or an excise of tne value of ile -admited Resets 11 the Phinppines ‘aclusive of ay aequily doposite, In cxs9 of & foralyn company, over tie amount of 1's fables, ungeined premiums and reinsurance reser Inthe Philppinss (936 194). SAMEERA Maln sgency chorgpd with the enforcement ct the ‘aurunca Code and other rated laws. FUNCTIONS 1. Agjusicatory! Quast Jusiclal 4. Bxehasive original juriscfction « ‘Any dlagutn in the enfoicemert of any pallay lesuad pursuant to Shepler Vi (CMVLI) (See, $82, por: 2). & Coneuavnt original jurisdiction (wita thw RTC) ~ Whwte {he upsinun amount involved in ‘ony single slain iy 2190,000.00 (Sue, 416), EXCEPT In. case of -mardime Insurance wiileh 1s within the Jursdiction ef the MTC ur the HTS dopanding un the value Invowed (OP 129, ad. italy & ‘manatnn Jursetion. Where the amount oxcoods P100,000.00, the RTC "as jungaition, ‘The thing of a complalat wha the Comins sioner shail preclude elvil cours fo m takin ccnizance of thu case, ‘A ducision whlch hay bocome final may be the subject of a wut cf waugutior whieh may be £0rv x) anduntorsug ky w Sheriff (Seo. 416). The tnsurance Commissioner Rx po jurisdiction to decide uiw lagality of a comruct uf aguncy ‘entered into between ai Insurance cor jpany and lis agent. The eanie Is NOT covered by tha term. "doing or rensucting ineura ico businsss" under Sec, 2, ICP, neither 's It covered wy Son, 18 of tie same Code which grants the Corninissloner erfudicatory powors (Puilippine Aunurican Lie Insuraneo Gu, vs. Anseldo, GR Ne, 76452 234 SCRA 509, July 26, 1994), 2 ADMIN:STRATIVE/ REGULATORY . a. Enforcement of Insurance sows B, Issuance, suspension or ravovstion of cetdficate of aushaity, Power to examine Becks and rucords e al d. Rule-making authority; and Punitive iw ER EAN Har Beda College of ¥aw GENIE BAN EEO, ye